Lam Research Corp. (Nasdaq:LRCX) today announced financial results
for the quarter ended March 25, 2018 (the “March 2018
quarter”).
Highlights for the March 2018 quarter were as follows:
- Shipments of $3.13 billion and revenue of $2.89 billion.
- U.S. GAAP gross margin of 46.0%, U.S. GAAP operating margin of
28.6%, and U.S. GAAP diluted EPS of $4.33.
- Non-GAAP gross margin of 46.8%, non-GAAP operating margin of
30.0%, and non-GAAP diluted EPS of $4.79.
|
Key Financial Data for the Quarters
Ended |
March 25, 2018 and December 24,
2017 |
(in thousands, except per-share data,
percentages, and basis points) |
|
U.S. GAAP |
|
|
March 2018 |
|
December 2017 |
|
Change Q/Q |
Shipments |
|
$ |
3,134,677 |
|
|
$ |
2,631,723 |
|
|
+ 19% |
Revenue |
|
$ |
2,892,115 |
|
|
$ |
2,580,815 |
|
|
+ 12% |
Gross margin as
percentage of revenue |
|
46.0 |
% |
|
46.7 |
% |
|
- 70 bps |
Operating margin as
percentage of revenue |
|
28.6 |
% |
|
28.6 |
% |
|
— |
Diluted EPS |
|
$ |
4.33 |
|
|
$ |
(0.06 |
) |
|
7317% |
|
Non-GAAP |
|
|
March 2018 |
|
December 2017 |
|
Change Q/Q |
Shipments |
|
$ |
3,134,677 |
|
|
$ |
2,631,723 |
|
|
+ 19% |
Revenue |
|
$ |
2,892,115 |
|
|
$ |
2,580,815 |
|
|
+ 12% |
Gross margin as
percentage of revenue |
|
46.8 |
% |
|
47.6 |
% |
|
- 80 bps |
Operating margin as
percentage of revenue |
|
30.0 |
% |
|
30.2 |
% |
|
- 20 bps |
Diluted EPS |
|
$ |
4.79 |
|
|
$ |
4.34 |
|
|
+ 10% |
U.S. GAAP Financial Results
For the March 2018 quarter, revenue was $2,892 million, gross
margin was $1,331 million, or 46.0% of revenue, operating expenses
were $503 million, operating margin was 28.6% of revenue, and net
income was $779 million, or $4.33 per diluted share on a U.S. GAAP
basis. This compares to revenue of $2,581 million, gross margin of
$1,206 million, or 46.7% of revenue, operating expenses of $468
million, operating margin of 28.6% of revenue, and net loss of
$(10) million, or $(0.06) per diluted share, for the quarter ended
December 24, 2017 (the “December 2017 quarter”). The December
2017 results were negatively impacted by a one-time provisional
charge of $757 million associated with the recently enacted U.S.
tax reform, which the Company will continue to evaluate during the
measurement period.
Non-GAAP Financial Results
For the March 2018 quarter, non-GAAP gross margin was $1,353
million or 46.8% of revenue, non-GAAP operating expenses were $486
million, non-GAAP operating margin was 30.0% of revenue, and
non-GAAP net income was $852 million, or $4.79 per diluted share.
This compares to non-GAAP gross margin of $1,228 million or 47.6%
of revenue, non-GAAP operating expenses of $449 million, non-GAAP
operating margin of 30.2% of revenue, and non-GAAP net income of
$788 million, or $4.34 per diluted share for the December 2017
quarter.
“Lam continues to deliver strong performance, again setting new
records highlighted by shipments exceeding three billion dollars in
the March quarter. Fundamental to this achievement is increased
strategic relevance enabling primary technology inflections now
critical to our customers’ success,” said Martin Anstice, Lam
Research’s Chief Executive Officer. “We remain focused on
delivering long-term outperformance and making the right
investments for our future.”
Balance Sheet and Cash Flow Results
Cash and cash equivalents, short-term investments, and
restricted cash and investments balances increased to $6.7 billion
at the end of the March 2018 quarter compared to $6.0 billion at
the end of the December 2017 quarter. This increase was primarily
the result of approximately $1.1 billion of cash generated from
operating activities, partially offset by approximately $80 million
of net share settlement on employee stock-based compensation, $80
million of dividends paid to stockholders, $49 million of capital
expenditures, and $29 million of net repayments of debt.
Deferred revenue and deferred profit at the end of the March
2018 quarter remained steady at $1.1 billion and $749 million,
respectively, as compared to the end of the December 2017 quarter.
Lam’s deferred revenue balance does not include shipments to
customers in Japan, to whom title does not transfer until customer
acceptance. Shipments to customers in Japan are classified as
inventory at cost until the time of acceptance. The estimated
future revenue from shipments to customers in Japan was
approximately $526 million as of March 25, 2018 and $289
million as of December 24, 2017.
Geographic Distribution
The geographic distribution of shipments and revenue during the
March 2018 quarter is shown in the following table:
Region |
Shipments |
|
Revenue |
Korea |
36% |
|
36% |
China |
14% |
|
17% |
Japan |
20% |
|
14% |
Taiwan |
11% |
|
12% |
Southeast Asia |
8% |
|
8% |
United States |
6% |
|
8% |
Europe |
5% |
|
5% |
|
|
|
|
Outlook
For the June 2018 quarter, Lam is providing the following
guidance:
|
U.S. GAAP |
|
Reconciling Items |
|
Non-GAAP |
Shipments |
$3.000 Billion |
+/- |
$150 Million |
|
— |
|
$3.000 Billion |
+/- |
$150 Million |
Revenue |
$3.100 Billion |
+/- |
$150 Million |
|
— |
|
$3.100 Billion |
+/- |
$150 Million |
Gross margin |
46.8% |
+/- |
1% |
|
$ |
22 |
|
Million |
|
47.5% |
+/- |
1% |
Operating margin |
29.7% |
+/- |
1% |
|
$ |
39 |
|
Million |
|
31.0% |
+/- |
1% |
Net income per diluted
share |
$4.77 |
+/- |
$0.20 |
|
$ |
36 |
|
Million |
|
$5.00 |
+/- |
$0.20 |
Diluted share
count |
179 Million |
|
1 |
|
Million |
|
178 Million |
|
|
|
|
|
|
|
|
The information provided above is only an estimate of what the
Company believes is realizable as of the date of this release, and
does not incorporate the potential impact of any business
combinations, asset acquisitions, divestitures, balance sheet
valuation adjustments, financing arrangements, other investments,
measurement period adjustments associated with U.S. tax reform, or
other significant transactions that may be completed after the date
of this release. U.S. GAAP to non-GAAP reconciling items provided
include only those items that are known and can be estimated as of
the date of this release. Actual results will vary from this model
and the variations may be material. Reconciling items included
above are as follows:
- Gross margin - amortization related to intangible assets
acquired through business combinations, $22 million.
- Operating margin - amortization related to intangible assets
acquired through business combinations, $39 million.
- Earnings per share - amortization related to intangible assets
acquired though business combinations, $39 million; amortization of
note discounts, $2 million; and associated tax benefit for non-GAAP
items ($5 million); totaling $36 million.
- Diluted share count - impact of a note hedge issued
contemporaneously with the convertible notes due 2018, 1 million
shares.
Use of Non-GAAP Financial Results
In addition to U.S. GAAP results, this press release also
contains non-GAAP financial results. The Company’s non-GAAP results
for both the March 2018 and December 2017 quarters exclude
amortization related to intangible assets acquired through business
combinations, acquisition and integration costs associated with a
business combination, amortization of note discounts, and tax
benefit of non-GAAP items. Additionally, the March 2018 quarter
non-GAAP results exclude realized loss on sale or impairment of
investments associated with repatriation and tax benefit on the
conclusion of tax matters related to a prior business combination.
The December 2017 quarter non-GAAP results exclude costs associated
with business process reengineering and estimated income tax
expense associated with U.S. tax reform.
Management uses non-GAAP gross margin, operating expense,
operating income, operating margin, net income, and net income per
diluted share to evaluate the Company’s operating and financial
results. The Company believes the presentation of non-GAAP results
is useful to investors for analyzing business trends and comparing
performance to prior periods, along with enhancing investors’
ability to view the Company’s results from management’s
perspective. Tables presenting reconciliations of non-GAAP results
to U.S. GAAP results are included at the end of this press release
and on the Company’s website at
http://investor.lamresearch.com.
Caution Regarding Forward-Looking
Statements
Statements made in this press release that are not of historical
fact are forward-looking statements and are subject to the safe
harbor provisions created by the Private Securities Litigation
Reform Act of 1995. Such forward-looking statements relate to, but
are not limited to: the estimated future revenue from shipments to
customers in Japan; our revenue, industry, performance and general
outlooks, and their drivers; our future strategic relevance to
customers; our vision of the Company's future; technology demand
trends; the legal and business factors that may affect our future
tax rate; and our guidance for shipments, revenue, gross margin,
operating margin, net income or earnings per diluted share,
provisional tax estimate, and diluted share count. Some factors
that may affect these forward-looking statements include: business
conditions in the consumer electronics industry, the semiconductor
industry and the overall economy may deteriorate or change; and the
actions of our customers and competitors may be inconsistent with
our expectations, as well as the other risks and uncertainties that
are described in the documents filed or furnished by us
with the Securities and Exchange Commission,
including specifically the Risk Factors described in our annual
report on Form 10-K for the fiscal year ended June 25, 2017
and our quarterly report on Form 10-Q for the fiscal quarters ended
September 24, 2017 and December 24, 2017. These uncertainties and
changes could materially affect the forward looking statements and
cause actual results to vary from expectations in a material way.
The Company undertakes no obligation to update the information or
statements made in this release.
About Lam Research
Lam Research Corp. is a global supplier of innovative wafer
fabrication equipment and services to the semiconductor industry.
As a trusted, collaborative partner to the world’s leading
semiconductor companies, we combine superior systems engineering
capability, technology leadership, and unwavering commitment to
customer success to accelerate innovation through enhanced device
performance. In fact, today, nearly every advanced chip is built
with Lam technology. Lam Research (Nasdaq:LRCX) is a FORTUNE 500®
company headquartered in Fremont, Calif., with operations around
the globe. Learn more at www.lamresearch.com. (LRCX-F)
Consolidated Financial Tables Follow.
|
|
|
|
LAM RESEARCH CORPORATION |
CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS |
(in thousands, except per share data and
percentages) |
(unaudited) |
|
|
|
|
|
Three Months Ended |
|
Nine Months Ended |
|
March 25, 2018 |
|
|
December 24,
2017 |
|
|
March 26, 2017 |
|
|
March 25, 2018 |
|
|
March 26, 2017 |
|
Revenue |
$ |
2,892,115 |
|
|
$ |
2,580,815 |
|
|
$ |
2,153,995 |
|
|
$ |
7,951,070 |
|
|
$ |
5,668,713 |
|
Cost of goods sold |
1,561,401 |
|
|
1,375,248 |
|
|
1,182,591 |
|
|
4,265,446 |
|
|
3,134,315 |
|
Gross
margin |
1,330,714 |
|
|
1,205,567 |
|
|
971,404 |
|
|
3,685,624 |
|
|
2,534,398 |
|
Gross
margin as a percent of revenue |
46.0 |
% |
|
46.7 |
% |
|
45.1 |
% |
|
46.4 |
% |
|
44.7 |
% |
Research and
development |
305,412 |
|
|
281,311 |
|
|
265,986 |
|
|
861,801 |
|
|
748,030 |
|
Selling, general and
administrative |
197,791 |
|
|
186,885 |
|
|
167,000 |
|
|
565,719 |
|
|
492,175 |
|
Total
operating expenses |
503,203 |
|
|
468,196 |
|
|
432,986 |
|
|
1,427,520 |
|
|
1,240,205 |
|
Operating
income |
827,511 |
|
|
737,371 |
|
|
538,418 |
|
|
2,258,104 |
|
|
1,294,193 |
|
Operating
income as a percent of revenue |
28.6 |
% |
|
28.6 |
% |
|
25.0 |
% |
|
28.4 |
% |
|
22.8 |
% |
Other expense, net |
(55,810 |
) |
|
(3,152 |
) |
|
(7,838 |
) |
|
(64,464 |
) |
|
(86,015 |
) |
Income
before income taxes |
771,701 |
|
|
734,219 |
|
|
530,580 |
|
|
2,193,640 |
|
|
1,208,178 |
|
Income tax benefit
(expense) |
7,099 |
|
|
(744,174 |
) |
|
44,133 |
|
|
(834,105 |
) |
|
(36,839 |
) |
Net
income (loss) |
$ |
778,800 |
|
|
$ |
(9,955 |
) |
|
$ |
574,713 |
|
|
$ |
1,359,535 |
|
|
$ |
1,171,339 |
|
Net income (loss) per
share: |
|
|
|
|
|
|
|
|
|
Basic |
$ |
4.80 |
|
|
$ |
(0.06 |
) |
|
$ |
3.52 |
|
|
$ |
8.40 |
|
|
$ |
7.22 |
|
Diluted |
$ |
4.33 |
|
|
$ |
(0.06 |
) |
|
$ |
3.10 |
|
|
$ |
7.45 |
|
|
$ |
6.40 |
|
Number of shares used
in per share calculations: |
|
|
|
|
|
|
|
|
|
Basic |
162,378 |
|
|
161,135 |
|
|
163,408 |
|
|
161,885 |
|
|
162,225 |
|
Diluted |
179,779 |
|
|
161,135 |
|
|
185,094 |
|
|
182,565 |
|
|
182,885 |
|
Cash dividend declared
per common share |
$ |
0.50 |
|
|
$ |
0.50 |
|
|
$ |
0.45 |
|
|
$ |
1.45 |
|
|
$ |
1.20 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LAM RESEARCH CORPORATION |
CONDENSED CONSOLIDATED BALANCE
SHEETS |
(in thousands) |
|
|
March 25, 2018 |
|
December 24, 2017 |
|
June 25, 2017 |
|
|
|
|
(unaudited) |
|
(unaudited) |
|
(1) |
ASSETS |
Cash and cash
equivalents |
$ |
4,698,995 |
|
|
$ |
1,745,173 |
|
|
$ |
2,377,534 |
|
Investments |
1,785,976 |
|
|
3,954,526 |
|
|
3,663,628 |
|
Accounts receivable,
net |
2,082,632 |
|
|
2,279,044 |
|
|
1,673,398 |
|
Inventories |
1,693,128 |
|
|
1,507,435 |
|
|
1,232,916 |
|
Other current
assets |
165,066 |
|
|
179,944 |
|
|
195,022 |
|
Total
current assets |
10,425,797 |
|
|
9,666,122 |
|
|
9,142,498 |
|
Property and equipment,
net |
826,500 |
|
|
807,340 |
|
|
685,595 |
|
Restricted cash and
investments |
256,587 |
|
|
255,984 |
|
|
256,205 |
|
Goodwill and intangible
assets |
1,825,891 |
|
|
1,866,159 |
|
|
1,796,668 |
|
Other assets |
328,724 |
|
|
316,660 |
|
|
241,799 |
|
Total
assets |
$ |
13,663,499 |
|
|
$ |
12,912,265 |
|
|
$ |
12,122,765 |
|
LIABILITIES AND
STOCKHOLDERS’ EQUITY |
|
|
|
|
|
Current portion of debt
and capital leases |
$ |
1,423,265 |
|
|
$ |
1,401,660 |
|
|
$ |
908,439 |
|
Other current
liabilities |
2,525,155 |
|
|
2,510,035 |
|
|
2,041,676 |
|
Total
current liabilities |
3,948,420 |
|
|
3,911,695 |
|
|
2,950,115 |
|
Long-term debt and
capital leases |
1,781,731 |
|
|
1,789,958 |
|
|
1,784,974 |
|
Income taxes
payable |
818,700 |
|
|
818,880 |
|
|
120,178 |
|
Other long-term
liabilities |
230,620 |
|
|
118,177 |
|
|
280,186 |
|
Total
liabilities |
6,779,471 |
|
|
6,638,710 |
|
|
5,135,453 |
|
Temporary equity,
convertible notes |
80,973 |
|
|
130,424 |
|
|
169,861 |
|
Stockholders’ equity
(2) |
6,803,055 |
|
|
6,143,131 |
|
|
6,817,451 |
|
Total
liabilities and stockholders’ equity |
$ |
13,663,499 |
|
|
$ |
12,912,265 |
|
|
$ |
12,122,765 |
|
|
|
|
|
|
|
|
|
|
|
|
|
(1 |
) |
Derived from audited
financial statements. |
(2 |
) |
Common shares issued
and outstanding were 164,100 as of March 25, 2018, 159,451 as of
December 24, 2017, and 161,723 as of June 25, 2017. |
|
|
|
|
LAM RESEARCH CORPORATION |
CONDENSED CONSOLIDATED STATEMENTS OF CASH
FLOWS |
(in thousands, unaudited) |
|
Three Months Ended |
|
Nine Months Ended |
|
|
March25, 2018 |
|
|
December 24, 2017 |
|
|
March
26, 2017 |
|
|
March 25, 2018 |
|
|
March 26, 2017 |
|
CASH FLOWS FROM
OPERATING ACTIVITIES: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) |
$ |
778,800 |
|
|
$ |
(9,955 |
) |
|
$ |
574,713 |
|
|
$ |
1,359,535 |
|
|
$ |
1,171,339 |
|
Adjustments to
reconcile net income (loss) to net cash provided by operating
activities: |
|
|
|
|
|
|
|
|
|
Depreciation and amortization |
82,236 |
|
|
79,898 |
|
|
76,242 |
|
|
241,276 |
|
|
227,869 |
|
Deferred
income taxes |
19,060 |
|
|
(271,478 |
) |
|
27,619 |
|
|
(209,214 |
) |
|
69,867 |
|
Equity-based compensation expense |
41,095 |
|
|
42,124 |
|
|
35,323 |
|
|
125,002 |
|
|
106,173 |
|
Impairment of investment |
42,456 |
|
|
— |
|
|
— |
|
|
42,456 |
|
|
— |
|
Loss on
extinguishment of debt |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
36,325 |
|
Amortization of note discounts and issuance costs |
4,342 |
|
|
4,539 |
|
|
6,136 |
|
|
13,469 |
|
|
19,168 |
|
Other,
net |
17,866 |
|
|
(1,108 |
) |
|
(4,738 |
) |
|
23,327 |
|
|
10,777 |
|
Changes in operating
assets and liabilities |
64,524 |
|
|
184,684 |
|
|
(292,607 |
) |
|
341,538 |
|
|
(341,508 |
) |
Net cash
provided by operating activities |
1,050,379 |
|
|
28,704 |
|
|
422,688 |
|
|
1,937,389 |
|
|
1,300,010 |
|
CASH FLOWS FROM
INVESTING ACTIVITIES: |
|
|
|
|
|
|
|
|
|
Capital expenditures
and intangible assets |
(49,057 |
) |
|
(84,693 |
) |
|
(44,116 |
) |
|
(193,814 |
) |
|
(122,608 |
) |
Business acquisitions,
net of cash acquired |
— |
|
|
(84 |
) |
|
— |
|
|
(115,697 |
) |
|
— |
|
Net sale (purchase) of
available-for-sale securities |
2,134,886 |
|
|
(205,701 |
) |
|
(418,566 |
) |
|
1,811,411 |
|
|
(1,977,744 |
) |
Transfers of restricted
cash and investments |
(603 |
) |
|
61 |
|
|
(982 |
) |
|
(382 |
) |
|
(5,736 |
) |
Other, net |
638 |
|
|
(4,396 |
) |
|
(3,586 |
) |
|
(14,358 |
) |
|
(11,627 |
) |
Net cash
provided by (used for) investing activities |
2,085,864 |
|
|
(294,813 |
) |
|
(467,250 |
) |
|
1,487,160 |
|
|
(2,117,715 |
) |
CASH FLOWS FROM
FINANCING ACTIVITIES: |
|
|
|
|
|
|
|
|
|
Principal payments on
long-term debt and capital lease obligations and payments for debt
issuance costs |
(228,166 |
) |
|
(47,522 |
) |
|
(69,227 |
) |
|
(577,415 |
) |
|
(1,685,868 |
) |
Net proceeds from
issuance of commercial paper |
199,024 |
|
|
798,947 |
|
|
— |
|
|
997,971 |
|
|
— |
|
Proceeds from
borrowings on revolving credit facility |
— |
|
|
750,000 |
|
|
— |
|
|
750,000 |
|
|
— |
|
Repayments of
borrowings on revolving credit facility |
— |
|
|
(750,000 |
) |
|
— |
|
|
(750,000 |
) |
|
— |
|
Treasury stock
purchases |
(80,105 |
) |
|
(1,111,450 |
) |
|
(216,373 |
) |
|
(1,346,940 |
) |
|
(285,894 |
) |
Dividends paid |
(79,739 |
) |
|
(73,127 |
) |
|
(73,337 |
) |
|
(225,604 |
) |
|
(169,786 |
) |
Reissuance of treasury
stock related to employee stock purchase plan |
— |
|
|
34,057 |
|
|
17,223 |
|
|
34,057 |
|
|
36,543 |
|
Proceeds from issuance
of common stock |
2,517 |
|
|
3,073 |
|
|
7,964 |
|
|
6,632 |
|
|
12,544 |
|
Other, net |
7 |
|
|
— |
|
|
(70 |
) |
|
11 |
|
|
(124 |
) |
Net cash
used for financing activities |
(186,462 |
) |
|
(396,022 |
) |
|
(333,820 |
) |
|
(1,111,288 |
) |
|
(2,092,585 |
) |
Effect of exchange rate
changes on cash and cash equivalents |
4,041 |
|
|
842 |
|
|
2,992 |
|
|
8,200 |
|
|
(462 |
) |
Net increase (decrease)
in cash and cash equivalents |
2,953,822 |
|
|
(661,289 |
) |
|
(375,390 |
) |
|
2,321,461 |
|
|
(2,910,752 |
) |
Cash and cash
equivalents at beginning of period |
1,745,173 |
|
|
2,406,462 |
|
|
2,503,960 |
|
|
2,377,534 |
|
|
5,039,322 |
|
Cash and cash
equivalents at end of period |
$ |
4,698,995 |
|
|
$ |
1,745,173 |
|
|
$ |
2,128,570 |
|
|
$ |
4,698,995 |
|
|
$ |
2,128,570 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP Financial Summary |
(in thousands, except percentages and per
share data) |
(unaudited) |
|
|
Three Months Ended |
|
March 25, 2018 |
|
December 24,
2017 |
Revenue |
$ |
2,892,115 |
|
|
$ |
2,580,815 |
|
Gross margin |
$ |
1,353,056 |
|
|
$ |
1,227,961 |
|
Gross margin as
percentage of revenue |
46.8 |
% |
|
47.6 |
% |
Operating expenses |
$ |
486,022 |
|
|
$ |
448,667 |
|
Operating income |
$ |
867,034 |
|
|
$ |
779,294 |
|
Operating margin as a
percentage of revenue |
30.0 |
% |
|
30.2 |
% |
Net income |
$ |
851,795 |
|
|
$ |
787,863 |
|
Net income per diluted
share |
$ |
4.79 |
|
|
$ |
4.34 |
|
Shares used in per
share calculation - diluted |
177,786 |
|
|
181,655 |
|
|
|
|
|
|
|
Reconciliation of U.S. GAAP Net Income (Loss)
to Non-GAAP Net Income and U.S. GAAP number of dilutive shares to
Non- |
GAAP number of dilutive shares |
(in thousands, except per share
data) |
(unaudited) |
|
|
Three Months Ended |
|
March 25, 2018 |
|
|
December 24,
2017 |
|
U.S. GAAP net income
(loss) |
$ |
778,800 |
|
|
$ |
(9,955 |
) |
Pre-tax non-GAAP
items: |
|
|
|
Amortization related to intangible assets acquired through certain
business combinations - cost of goods sold |
22,342 |
|
|
22,394 |
|
Amortization related to intangible assets acquired through certain
business combinations - selling, general and administrative |
17,074 |
|
|
17,074 |
|
Costs
associated with business process reengineering - selling, general
and administrative |
— |
|
|
1,362 |
|
Business
combination acquisition and integration related costs - selling,
general and administrative |
107 |
|
|
1,093 |
|
Amortization of note discounts - other expense, net |
2,860 |
|
|
3,410 |
|
Realized
loss on sale or impairment of investments - other expense, net |
46,641 |
|
|
— |
|
Net income tax benefit
on non-GAAP items |
(11,518 |
) |
|
(4,404 |
) |
Income tax benefit on
the conclusion of certain tax matters |
(4,511 |
) |
|
— |
|
Income tax expense
associated with U.S. tax reform |
— |
|
|
756,889 |
|
Non-GAAP net
income |
$ |
851,795 |
|
|
$ |
787,863 |
|
Non-GAAP net income per
diluted share |
$ |
4.79 |
|
|
$ |
4.34 |
|
GAAP net income (loss)
per diluted share |
$ |
4.33 |
|
|
$ |
(0.06 |
) |
U.S. GAAP number of
shares used for per diluted share calculation |
179,779 |
|
|
161,135 |
|
Effect of potentially
dilutive securities: |
|
|
|
Employee
stock plans |
— |
|
|
2,757 |
|
Convertible notes |
— |
|
|
15,423 |
|
Warrants |
— |
|
|
4,721 |
|
Effect of convertible
note hedge |
(1,993 |
) |
|
(2,381 |
) |
Non-GAAP number of
shares used for per diluted share calculation |
177,786 |
|
|
181,655 |
|
|
|
|
|
|
|
Reconciliation of U.S. GAAP Gross Margin,
Operating Expenses and Operating Income to Non-GAAP Gross Margin,
Operating |
Expenses and Operating Income |
(in thousands, except
percentages) |
(unaudited) |
|
|
Three Months Ended |
|
March 25, 2018 |
|
December 24,
2017 |
U.S. GAAP gross
margin |
$ |
1,330,714 |
|
|
$ |
1,205,567 |
|
Pre-tax non-GAAP
items: |
|
|
|
|
|
|
|
Amortization related to intangible assets acquired through certain
business combinations |
22,342 |
|
|
22,394 |
|
Non-GAAP gross
margin |
$ |
1,353,056 |
|
|
$ |
1,227,961 |
|
U.S. GAAP gross margin
as a percentage of revenue |
46.0 |
% |
|
46.7 |
% |
Non-GAAP gross margin
as a percentage of revenue |
46.8 |
% |
|
47.6 |
% |
U.S. GAAP operating
expenses |
$ |
503,203 |
|
|
$ |
468,196 |
|
Pre-tax non-GAAP
items: |
|
|
|
Amortization related to intangible assets acquired through certain
business combinations |
(17,074 |
) |
|
(17,074 |
) |
Costs
associated with business process reengineering |
— |
|
|
(1,362 |
) |
Business
combination acquisition and integration related costs |
(107 |
) |
|
(1,093 |
) |
Non-GAAP operating
expenses |
$ |
486,022 |
|
|
$ |
448,667 |
|
Non-GAAP operating
income |
$ |
867,034 |
|
|
$ |
779,294 |
|
U.S. GAAP operating
margin as percent of revenue |
28.6 |
% |
|
28.6 |
% |
Non-GAAP operating
margin as a percent of revenue |
30.0 |
% |
|
30.2 |
% |
|
|
|
|
|
|
Lam Research Corporation
Contacts:
Satya Kumar, Investor Relations, phone:
510-572-1615, e-mail: investor.relations@lamresearch.com
Lam Research (NASDAQ:LRCX)
Historical Stock Chart
From Mar 2024 to Apr 2024
Lam Research (NASDAQ:LRCX)
Historical Stock Chart
From Apr 2023 to Apr 2024